Business owners always look for new opportunities to grow their brands. Likewise, potentially expanding to better horizons opens the doors to new markets and prospects for collaboration, setting your business up to be a global player in your respective industry.
When it comes to deciding where to expand, location matters significantly. And Canada is one that you may want to consider as it is on the list of leading countries in terms of economic performance, quality of life, and community.
The country continuously sees itself among the safest countries in the world to do business in. Additionally, due to its sharing borders with the US, it sees plenty of opportunities for incoming workers and businesses.
Tips on Expanding Your Business to Canada
Moving a business outside your country is challenging regardless of where you’re expanding. As such, it’s best to consider how your timeline, company roadmap, financial resources, and hiring can affect your entry plan.
Once you’ve set an entry strategy, the next step is to decide where to establish a satellite office in Canada. Several external factors can impact your business’s success, so conducting research is a must. These factors usually involve the province or location to set up your business, the business landscape in that area, its legal structures and processes, and the like.
How to Set Up Your Business in Canada
You may feel ready to embark on the next chapter of your business endeavor. If so, the biggest challenge now is how to successfully set up your company’s expansion in a different country. The lack of brand awareness may have your business compared to another in a new place, regardless of your established footprint in your host country.
As such, the first step is to find the ideal location where your business can thrive. Research into places that need services your company offers. Effectively tapping into this market can easily make your business a household name.
Additionally, once you’ve established a presence in the market, setting up subsidiary businesses can speed up your expansion process and protect your assets.
However, there’s another way you can accelerate your expansion if you don’t want to take on subsidiary projects. You can purchase and acquire existing businesses in Canada to gain access to key industry insights without building from scratch.
Pros and Cons of Expanding to Canada
Opting to expand your business to Canada comes with several pros and cons. Here are some considerations to help your decision-making process for business expansion.
Pros of Expanding to Canada
Canada’s robust economy continues to dominate globally. It also has a strategic location that shows an advantage over other countries. Moreover, Canada prides itself on its highly educated and skilled labor force, ranking 15th in IMD’s World Talent Ranking, making it an ideal location for expanding businesses.
The country also hosts many industries that aspiring businesses elsewhere can leverage. Top sectors include retail, education, manufacturing, mining, real estate, and health care.
Additionally, the country consistently tops global rankings with its impressive workforce and business environment. This factor is a big plus considering the low cost of doing business compared to other countries and current tax rates benefitting businesses.
Cons of Expanding to Canada
While there seem to be several benefits to expanding your business to Canada, there are also disadvantages and potential hurdles you must consider to avoid setbacks when operating in the country.
Expanding your business to a different country means dealing with cultural differences. On top of these differences, you must navigate federal and provincial laws and regulations, such as labor and tax laws. In line with tax processes, it’s best to manage your finances properly to avoid penalties or hefty fines.
Moreover, labor costs are higher in Canada than in other countries. One way the Canadian government supports its workforce is by implementing high minimum wage laws, with the federal minimum wage being CA$15.55 as of 2022. Investing in quality workers also means businesses coming into the country should be financially ready to pay a significant amount for workers alone.
Choosing Canada for Your Business Expansion
Expanding your business to Canada involves a lot of crucial decision-making. Despite the cons of entering a new territory, the benefits of being exposed to new markets, opportunities, and improved quality of life merit Canada as a prime location for any business looking to expand. With that, take time researching to see what Canada offers your company.
